Ramco Industries Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Ramco Industries Ltd trades at ₹322, in a confirmed uptrend and 10 weeks into that stage. That is +3.1% against its own 200-day average. It sits at 64% of a 52-week range of ₹240 to ₹368. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 20 straight weeks.

Today the stock is in a confirmed uptrend — week 10 of stage 2, confirmed. At ₹322 it trades +3.1% versus its 200-day average and sits at 64% of its 52-week range (₹240–₹368).

Against the market, two honest reads. Cumulative: over the last 10.5 years the stock moved +268% while the NIFTY 500 moved +267% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 20 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

Ramco Industries Ltd's story is not scored yet against the markers our research file set on 19 July 2026. Where it sits in its own cycle: MID_CONTRACTION. Our fortnightly research layers last read it on 22 August 2026.

Our read, 19 July 2026. Trailing PE looks cheap but EPS is inflated by peak margins and one-time gains, creating a peak margin value trap.

From the numbers. Trailing PE has compressed to 10.2x, but this is a peak margin value trap. Normalized to mid-cycle margins, the PE is at the 98th percentile.

From the price. Price stage 2, week 10 — above its 200-day line, relative strength falling.

From the research. Trailing PE looks cheap but EPS is inflated by peak margins and one-time gains, creating a peak margin value trap.

🚨 Where they disagree. Trailing PE has compressed to 10.2x, but this is a peak margin value trap. Normalized to mid-cycle margins, the PE is at the 98th percentile.

What is proven. Trailing PE looks cheap but EPS is inflated by peak margins and one-time gains, creating a peak margin value trap.

What is not proven yet. Sustained volume-led growth in the core cement products business accompanied by a reversal in the working capital bloat, specifically a reduction in inventory days back toward the 200-day historical average.

🚨 What would change our mind. Sustained volume-led growth in the core cement products business accompanied by a reversal in the working capital bloat, specifically a reduction in inventory days back toward the 200-day historical average.

🚨 Layer 1 read, 22 August 2026 — DROP. Nine times earnings looks cheap until you see that about half the profit comes from stakes in other companies. Ramco Industries trades at 9.6 times earnings and below book value, which normally reads as cheap. But in three of the last four quarters the reported profit is LARGER than the pre-tax profit after paying tax — Rs 112 crore reported against Rs 36 crore of pre-tax profit taxed at 40% in December, Rs 88 crore against Rs 64 crore taxed at 25% in March — which means roughly Rs 159 crore of the Rs 328 crore annual profit is arriving from holdings in other businesses rather than from selling its own products. A return on capital of 4.57% says the same thing from the other direction. The genuinely good news, which the older write-up could not have known, is that the June 2026 quarter was the…

What would change Layer 1’s mind. The verdict rises to P1 only on one specific observation: two more quarters like Jun 2026, where reported profit does NOT exceed post-tax pre-tax profit and the operating margin holds at or above 15% — that would establish the earnings are the company own and the cheap multiple is measuring something real. It falls to DROP if operating margin returns below 11% (the timeline own M1 threshold) while inventory days push past 235 — that combination would confirm the peak-margin reversion AND the…

The test written in advance. Sustained volume-led growth in the core cement products business accompanied by a reversal in the working capital bloat, specifically a reduction in inventory days back toward the 200-day historical average. — the thesis as written as stated by the next result.

The test written in advance. Peak Margin Value Trap — Peak Margin Value Trap OPM trajectory in Q1 FY27 by the next result.

The test written in advance. Working Capital Bloat — Working Capital Bloat Inventory days in upcoming half-yearly balance sheet by the next result.

What the company does. Q4 FY26 net profit soared to ₹88 Cr (up 2.5x), but this was driven by a one-time gain alongside operating performance. At 10.2x trailing PE, the stock appears cheap (50th percentile), but normalized to mid-cycle margins, PE sits at the 98th percentile. Working capital is expanding faster than revenue growth, with inventory days jumping from 203 to 235 over four years.

🚨 What the surface reading misses. The surface reading is: High OPM suggests strong pricing power and profitability The research reads it further: Margins are at a cyclical peak and likely to mean-revert to the 11.2% historical average

🚨 What the surface reading misses. The surface reading is: PE of 10.2x at the 50th percentile looks fairly valued or cheap The research reads it further: The denominator (EPS) is inflated by record peak margins and one-offs, making the low PE a value trap

Lever 1 · Operating leverage — BUILDING. Recent quarters show sequential revenue improvement, with Q4 FY26 hitting ₹502 Cr. What proves it keeps working: Earnings Rebound. It stops working if Volume growth stalls in Q1 FY27.

Sources: our stock research file (19 July 2026) · quarterly results through Jun 26. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Ramco Industries Ltd reported ₹614 Cr of revenue in the Jun 26 quarter, +15.4% year on year. That is the 4th straight quarter of year-on-year growth. Over 10 years it has compounded at 7.6% a year. The last full year, FY26, came in at ₹1,792 Cr. The last four reported quarters add to ₹1,873 Cr.

FY26 revenue came in at ₹1,792 Cr (+7.0% on the year), capping 10 years at 7.6% compound. The latest quarter (Jun 26) printed ₹614 Cr, +15.4% year on year — the 4th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +12.9% growth against the decade's 7.6% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +13.4% over the last 4 quarters against +9.6%/yr over the last 8 — accelerating; TTM profit +57.7% vs +76.7%/yr — rolling over.

FY26-Q3. Revenue stood at ₹392 Cr with an operating profit of ₹47 Cr. OPM contracted slightly to 12%. PAT jumped to ₹112 Cr, suggesting significant non-operating income or tax benefits during the quarter.

Why-sources: our stock research file (19 July 2026) and the company’s own results for those quarters.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Ramco Industries Ltd's operating margin is 17.0% in the Jun 26 quarter, +4.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 8.0% to 16.0%. The current quarter is running above every full year in that window.

Why this happened. Revenue growth has returned in the last two quarters. However, lack of management commentary makes it difficult to assess if this is structural or pent-up demand.

The latest quarter's operating margin is 17.0%, +4.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 8.0%–16.0%.

Why the margin moved: operating margin went +4.3 pp year on year while gross margin went +6.4 pp — the gain came mostly from the gross line: input costs and pricing.

FY26-Q3. Revenue stood at ₹392 Cr with an operating profit of ₹47 Cr. OPM contracted slightly to 12%. PAT jumped to ₹112 Cr, suggesting significant non-operating income or tax benefits during the quarter.

Why-sources: our stock research file (19 July 2026) and the company’s own results for those quarters.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Ramco Industries Ltd earned ₹87.0 Cr of net profit in the Jun 26 quarter, +31.8% year on year. It is the 5th consecutive quarter of growth. Full-year FY26 profit was ₹306 Cr. The 10-year compound rate is 4.8%. That is 14.2% of the quarter's revenue. The same quarter a year earlier earned ₹66.0 Cr.

Jun 26 profit was ₹87.0 Cr, +31.8% year on year — the 5th consecutive quarter of growth. On the full year, FY26 printed ₹306 Cr (+69.1%), and the 10-year compound rate is 4.8%.

Why profit moved: revenue contributed +15.4% and the margin +4.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +85.8% vs revenue +12.9%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

FY26-Q3. Revenue stood at ₹392 Cr with an operating profit of ₹47 Cr. OPM contracted slightly to 12%. PAT jumped to ₹112 Cr, suggesting significant non-operating income or tax benefits during the quarter.

Why-sources: our stock research file (19 July 2026) and the company’s own results for those quarters.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 79% of Ramco Industries Ltd's reported profit arrived as operating cash — most of the profit is real cash. In FY26 that was ₹201 Cr of operating cash against ₹306 Cr of profit. After ₹47.0 Cr of capital spending, ₹154 Cr was left as free cash.

FY26: operating cash of ₹201 Cr against reported profit of ₹306 Cr, leaving free cash of ₹154 Cr after ₹47.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 79% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 79%: the cash cycle stretched 45 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: conversion is below par and the cash cycle has stretched 45 days — the next section's job is to find where the cash is stuck.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Ramco Industries Ltd's cash conversion cycle runs 242 days in FY26, up from 197 days in FY21. Capital spending ran ₹109 Cr over the last 3 years. At FY26 sales of ₹1,792 Cr each day of that cycle holds about ₹4.9 Cr, so roughly ₹1,188 Cr sits inside the business at any moment.

FY26: debtors at 18 days, inventory at 235 days — roughly 7.7 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 242 days, looser than FY21's 197.

The full loop: cash goes out to suppliers and production on day 0; stock waits 235 days to sell; customers pay about 18 days after that; and suppliers themselves are paid at 11 days — netting out to the 242-day cycle.

In money terms: at FY26 sales of ₹1,792 Cr, each day of the cycle holds about ₹4.9 Cr — so the 242-day loop keeps roughly ₹1,188 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹109 Cr over the last 3 fiscal years against ₹110 Cr of depreciation — spending at or below maintenance level. Capital work-in-progress stands at ₹17.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the working-capital loop is the cash sink the router flagged — watch the cycle, not the P&L.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Ramco Industries Ltd earns a ROCE of 5% in FY26. That is up from a trough of 3% in FY14. Return on invested capital clears the cost of that capital by −7.7 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 17.1% net margin on 0.36× asset turns.

FY26 ROCE is 5%, recovered from a FY14 trough of 3% — the full ladder below shows the fall and the climb, undoctored.

🚨 Why the return is what it is — the wiring (FY26): 17.1% net margin × 0.36× asset turns × 1.10× balance-sheet leverage ≈ 6.8% on equity. Margin is doing the heavy lifting; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 4.3% − 12.0% = a −7.7 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Ramco Industries Ltd carries total debt of ₹171 Cr against shareholder equity of ₹4,522 Cr as of Mar 26, a debt-to-equity of 0.04 — effectively unlevered. On the annual view that ratio went from 0.06 in FY22 to 0.04 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹171 Cr against shareholder equity of ₹4,522 Cr — a debt-to-equity of 0.04. On the annual view, debt-to-equity went from 0.06 (FY22) to 0.04 (FY26). The returns on this page are earned, not borrowed.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

No holder of Ramco Industries Ltd moved a full percentage point over the last two years — the register is quiet. Promoters moved +0.0 points over the same window, to 54.8%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: −0.8 points over 8 quarters to 3.4%; Promoters: +0.0 points over 8 quarters to 54.8%; Foreign institutions: +0.0 points over 8 quarters to 1.0%.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Ramco Industries Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Ramco Industries Ltd trades at 8.9× P/E, near the bottom of its own range — cheaper only 25% of the time. Its long-run median P/E is 10.1×, measured across 10.5 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 8.9× is near the bottom of its own range — cheaper only 25% of the time, against a long-run median of 10.1× measured over 10.5 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +69.2% against a −11.3% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the +1.2%/yr price move, ~+1.5%/yr came from earnings growth and ~−0.3 pp from the multiple (roughly flat); over 10y, of the +6.8%/yr price move, ~+5.6%/yr came from earnings growth and ~+1.2 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is low against its own past, so the story rests on the earnings line underneath it, not the multiple.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

Solved at its 27 August 2026 price, Ramco Industries Ltd was paying for profit growth of about 2.1% a year. Profit itself has compounded 4.8% a year over the past 10 years. Today the market pays 8.9× P/E, the 25th percentile of its own 11-year range.

What the two numbers say together. The multiple is low against its own past, and the growth the price is paying for is close to what this company has actually delivered.

How to hold this number: it is a reading of one day's price, taken on 27 August 2026, not a running figure — every other number on this page, the multiple included, is read off the live quote as of 11 September 2026. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements.

Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Ramco Industries Ltd reads as mixed on its fundamental arc. Mixed — growth is normalizing off a hyper-growth base: profit growth has eased from +84.1% at its peak to +57.7% but is still expanding, ROCE holding at 4.8%. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

4-Factor Sector Score

69.4/100 — rank 2 of 6 in Cement Products · 91% evidence confidence

Ramco Industries Ltd scores 69.4 out of 100 against the 6 companies it is compared with in Cement Products, ranking 2. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 28.5 + 10.9 + 15.6 + 14.4 = 69.4. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Frequently asked questions